Section 3. Centralized Offer in Compromise Transfers, Perfection, and Case Building

5.8.3 Centralized Offer in Compromise Transfers, Perfection, and Case Building

Manual Transmittal

Purpose

(1) This transmits revised IRM 5.8.3, Offer in Compromise, Centralized Offer in Compromise Transfers, Perfection and Case Building.

Material Changes

(1) This IRM contains the following corrections and clarifications:

(2) Editorial changes were made throughout sections as needed.

IRM Section Title Change
Entire IRM Entire IRM Made grammatical changes and updated links throughout.
Effect on Other Documents Effect on other Documents Interim Guidance SBSE-05-0623-0032, IG on ITINs, Liens, and ES payments dated 06-26-2023, IGM SBSE-05-1222-0085, IG on Document Upload Tool (DUT) for Collection Employees, dated 12-02-2022, IGM SBSE-05-0223-0001, IG on OIC-IAT Usage in the OIC Process. IGM SBSE-05-0823-0029, IG on Secure Messaging for SCOIC Employees, dated 08/03/2023.
5.8.3.1.6 Terms/Definitions/Acronyms Included Document Upload Tool (DUT), IAT, Secure Messaging (SM) and PACER to the list of acronyms.
5.8.3.3 Routing Cases Based on Jurisdictional Responsibility (2) “If and Then” box, 1st box added: there are no fees or compliance check for DATL offers. See IRM 5.8.4
5.8.3.5 Processing Form 656 and Initial Offer Payments (7) Added Exception: Send payroll service provider (PSP) fraud offers to the NEH-ETA group.
5.8.3.6 Perfecting Offers (1) Added Secure messaging is voluntary but recommended as a way to communicate with the taxpayer/POA . Added (1) Chart, 1st Box, If the basis is not checked or both boxes are check, request perfection in combo letter. Added: (1) Chart, 4th box, If the PE missed the deactivated ITIN during processability, return the offer and the application fee via manual refund. Added: (2) Added: perfect the name line on AOIC so it will be seen through the window envelope. Added 2nd bullet to (2) how to enter the name line for a decedent taxpayer. All subsequent parentheses were renumbered. Added how to enter a decedent taxpayer on the name line and gave IRM reference for examples. Remove box 10 for FTDs as they are returned during processability for non-compliance. (5) 1st bullet removed to correct the entity screen if data download transferred the information in all capital letters. If and Then Chart box 8 rewrote open paragraph for clarity.
5.8.3.7 Case building Added (4) PEs should offer Secure Messaging and DUT to taxpayers as a way to correspond quickly and securely in lieu of mailing the documents.
5.8.3.8 PE Request for Estimated Tax Payments Rewrote entire section for clarity.
5.8.3.9 AOIC Combo Letter (2) Added: Never discuss CI issues with the taxpayer or POA.(3) Added SM and DUT as a way to communicate with the taxpayer or POA. Removed (7) to stamp combo letters with Urgent Time Sensitive” on outgoing letters. All subsequent were renumbered. (6) and (7) added PE is to document AOIC remarks with their telephone conversation with the taxpayer. (8) Added: Input the appropriate follow up date to ensure timely interim letters are sent.
5.8.3.11 Processing Telephone Responses to Combo Letters (5) “If and Then” chart, Added to box 1 that “not able” is not an excuse for not making their ES payments, the taxpayer must be not liable. (5) “If and Then” chart item numbers 2 & 3, added the effective date for the withdrawal is the date the IRS sends a confirming letter.
5.8.3.13 No Reply Procedures (5) 5th bullet: removed to include a copy of the remarks in the case file.
5.8.3.14.1 Offers Submitted Solely to Delay Collection per Forms 657 Added: (3) if there is not sufficient information to support the Solely to Delay, send to the in-house RO. Removed (8)
5.8.3.15 Input and verification of TC 480 (4)3rd box on If and Then Chart added: To manually input TC 480/481 for solely to delay with a cycle delay to avoid unposting of the TC 481.
5.8.3.16 Dishonored Payments (6)Added guidance on dishonored payments for subsequent TIPRA periodic payments. All subsequent parentheses were renumbered.
5.8.3.18 Expedite Handling Added (3) last bullet: A procedural or other type issue creates the need for a new offer to be filed and the intent is only to correct the error or defect rather than rework the offer or work it as a new submission
5.8.3.19 Third Party Authorizations (7) Added guidance on what do to if only one taxpayer on a joint offer has a POA.
Exhibit Form 3210 Removed and placed Form 3210 for CDP offers going to Appeals on Share Point.

Effect on Other Documents

This material supersedes IRM 5.8.3, dated October 11, 2022, and incorporates Interim Guidance Memorandums (IGM) IGM SBSE-05-0623-0032, IG on ITINs, Liens, and ES payments, dated 06-26-2023, IGM SBSE-05-1222-0085, Document Upload tool (DUT) for Collection Employees, dated 12-02-2022, IGM SBSE-05-0223-0001, OIC-IAT Usage in the Offer in Compromise Process, dated 02-28-2023. IGM SBSE-05-0823-0029 IG on Secure Messaging for SCOIC Employees, dated 08/03/2023.

Audience

SB/SE Collection and Campus Compliance employees

Effective Date

Rocco A. Steco
Director, Collection Policy
Small Business/Self Employed

5.8.3.1 (11-05-2020)

Program Scope and Objectives

  1. Purpose : This IRM section provides instruction for determining jurisdictional responsibility, perfecting and case building, and transferring offers in compromise.
  2. Audience : The primary users of this IRM are offer in compromise employees who are responsible for initial case processing of offer in compromise receipts. It also provides information to other collection employees when considering an offer in compromise a collection alternative.
  3. Policy Owner : Director, Collection Policy, SB/SE.
  4. Program Owner : Collection Policy, SBSE, Offer in Compromise (OIC) Program.
  5. Primary Stakeholders : The primary stakeholders are OIC process examiners.
  6. Program Goal : Policy Statement P-5-100 explains the objectives of the OIC as a collection tool. By following the processes and procedures in this IRM, employees will be able to accurately and timely complete initial processing and case building of OIC receipts.